According to court documents seen by The Telegraph, NRAM claims UBS 'knowingly packaged impaired' financial products, including collateralised debt obligations and residential mortgage-backed securities, and sold them to Northern Rock for a high price even though it knew they were shoddy.

UBS has tried to distance itself from the collapse, arguing Northern Rock promised to do its own due diligence on the products, and that it was sophisticated enough to take responsibility for the error. It also pointed out that it made disclaimers warning Northern Rock not to rely on its marketing materials.